BNSF profit up despite 26% revenue drop
Burlington Northern Santa Fe Corp. reported second quarter net profit of $404 million, 15 percent more than in the same 2008 period.
The profit increase came despite a 26 percent drop in revenue, to $3.3 billion in the second quarter.
“BNSF had another strong quarter of cost control in an extremely difficult economic environment,” said Matthew K. Rose, BNSF chairman, president and chief executive officer. “We are beginning to see BNSF’s volumes stabilize in our more economic sensitive businesses, and because of our continued focus on productivity combined with our long-term market opportunities, we are well positioned to benefit when the economy recovers.”
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The company reported results by segment:
' Coal revenue down 3 percent to $875 million on flat unit volumes.
' Agricultural products decreased 25 percent to $618 million on lower unit volumes primarily driven by reduced domestic loadings and international grain shipments, partially offset by improved yields.
' Industrial products fell 34 percent to $686 million, which included a decline in unit volumes driven by lower demand for construction products and building products that was partially offset by improved yields.
' Consumer products declined 34 percent to $1.04 billion on lower international and domestic intermodal and automotive volumes due to economic conditions.
The company added decreased fuel surcharges driven by lower fuel prices also negatively impacted revenues of each of the business units.